As if going through the nightmare of foreclosure proceedings wasn’t bad enough, some of the victims who have been compensated as a result of a settlement between big banks and U.S. regulators can’t even get their darn checks to cash. Most of those borrowers only received between $300 and $500, and have been told their checks were rejected when trying to get their money.
The Federal Reserve reported the snafu hitting some recipients of the payments, saying in a statement that “early problems with some checks have been corrected,” the Fed said in a statement today. All funds are now available, the Fed added, which made us think it maybe just forgot to transfer money from its savings to its checking account or something.
Instead, the Fed says there was an issue with the paying agent and the paying bank, but all problems have been corrected as of now.
The settlement checks were sent out after an independent review of banks’ shady foreclosure tactics ended with the government laying out a confusing and somewhat arbitrary settlement plan, because it was just too difficult to figure out what each victim should get from the banks.
More than 50,000 people have had success cashing or depositing their settlement checks, notes the Fed, out of the 4.2 million eligible borrowers out there who could receive payments.
“The Board will continue to monitor the payments closely and encourages borrowers who have concerns or experience difficulties cashing their checks to call Rust at 1-888-952-9105,” the Fed added.